On Avoidance Activities After Accidents

Tim Friehe

Review of Law & Economics, 2010, vol. 6, issue 2, 181-195

Abstract: This paper allows for avoidance activities in the accident setting and analyzes how this affects the evaluation of uncertain due care standards and of different negligence conceptions from an efficiency perspective. Importantly, our analysis also shows that punitive damages, i.e., damages above the harm incurred, can be welfare-reducing if injurers can choose avoidance.

Date: 2010
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DOI: 10.2202/1555-5879.1406

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